I would have won a bid for a house at 490k but after losing a whole nights sleep thinking about a 3k monthly mortgage I decided it wasnt for me.I just dont konw how people do it in LA.  

The borrower could be a pita and although you get your money in the end you have to take Ambien every night for two years to sleep, not to mention the 376 new gray hairs you acquire.9. 

Do whatever gets you the most sleep at night. 

On the other hand, Saying a primary residence is not an investment is like saying sleeping pills aren't harmful; it all depends on how you use it, if that's the right type for you, where do you buy it etc.

Obviously it is not and the price disparity of paying investment loan rates is well worth the ability to sleep well at night. 

I need to be able to sleep at night knowing I'm making a positive difference in the life of a client.

I would save it all until I could sleep at night knowing I have enough money in the bank to cover the worst case scenario.According to a common "formula" used on BP (50%), you would divide the 1,400 in half to get your expected non-financing expenses (everything but P&I).

The interest rates are lower on owner occupied properties because they know if something goes wrong you will fight for the place you go to sleep at night.

Another way is to leave sleeping dogs lie, buy the right to service the obligation, not buy the note, you service it, net out your servicing fees plus any advance you made of future payments with interest to you.

Do it right, and sleep better at nite.